EU Commission Prepares Retaliatory Tariffs on US Products

The European Commission has initiated a public consultation regarding a list of American products that could be subject to EU retaliatory tariffs if ongoing EU-US negotiations do not lead to mutually beneficial outcomes and the removal of U.S. tariffs. The consultation list covers imports from the U.S. worth €9.5 billion, spanning a wide range of industrial and agricultural goods. Additionally, consultations are being conducted on potential restrictions on certain EU steel scrap and chemical exports to the U.S., valued at €4.4 billion. This consultation aims to address both the general U.S. tariffs and those on automobiles and auto parts. Since the U.S. imposed unjustified and harmful tariffs, the EU has prioritized finding a mutually beneficial and balanced solution through negotiations, including within the framework of the 90-day partial suspension of U.S. tariffs. These negotiations continue at both political and technical levels. The EU continues to prepare possible countermeasures to protect its consumers and industry, alongside ongoing negotiations in case they do not result in satisfactory outcomes. Although the public consultation is a necessary step in this process, it does not automatically lead to the adoption of countermeasures. Simultaneously, the EU will also initiate a dispute at the WTO against the U.S. regarding the so-called ‘reciprocal’ general tariffs and those on automobiles and auto parts by formally requesting consultations. The EU firmly believes these tariffs grossly violate fundamental WTO rules. The goal is to reaffirm that internationally agreed rules matter and cannot be unilaterally ignored by any WTO member, including the U.S. Finally, the Commission continues to closely monitor the potential diversion of global exports to the EU market caused by U.S. tariffs on third countries. Moreover, the Commission will continue negotiations with other trade partners to find new export channels and diversify our supply sources.